GE: Check Out the “Industrial Internet”
General Electric (NYSE:GE) announced Monday the invention of the Industrial Internet: an open global network that will enable networks, data and machines to communicate automatically with each other, increasing technological efficiency and—according to GE—potentially adding 10-15 trillion dollars to the global economy.
“We found that the benefits from this marriage of machines and analytics are multiple and significant and in today’s challenging economic environment, securing even part of these productivity gains could bring great benefits at both the individual and economy-wide level,” said GE’s Chief Economist, Marco Annunziata.
CHEAT SHEET Analysis: Is GE’s Industrial Internet a “Catalyst for GE’s Stock?”
One of the core components of our CHEAT SHEET Investing Framework focuses on catalysts that will move a company’s stock. The news of the Industrial Internet caused a slight spike in GE’s stock late Monday and early Tuesday, but GE’s implementation will take years to significantly affect its stock.
The New York Times reported GE plans to invest 1 billion dollars, by 2015, in a San Francisco-based software center that’s primary focus will be to implement the Industrial Internet. The key, then, for investors is not to figure out if the Industrial Internet will positively impact GE’s stock, but when.